On March 3, Binance Changpeng Zhao’s CEO announced that the exchange had withdrawn its votes. This has led to a sudden shift in control over the Steem blockchain.
The leading stock exchanges Binance, Huobi and Poloniex came under criticism this morning for allegedly mobilizing customer deposits. They are said to have voted for the hostile takeover of the popular crypto blogging platform Steemit.
Steem’s proprietary blockchain called Steem uses a proof-of-stake protocol. A few “witnesses” vote to secure his network. The votes are distributed according to the number of tokens a person has in their wallet. The Steem witnesses were ousted in favor of a single user. This uses the username @ dev365. The account is said to belong to Justin Sun, the founder of Tron.
Zhao claimed that he had been made aware of a planned “upgrade / hard fork” that he supported. He commented: “Projects do it all the time. Usually we only support it.
Binance, Huobi and Poloniex mobilize customer deposits to replace Steem witnesses
This action was supported by Binance, Huobi and Poloniex. They used an enormous number of STEEM tokens to displace the previous witnesses.
The five largest voters had 208,414 votes and each represented 4 or 5 voters. The next three largest voters have 88,000 to 90,000 votes, but represent between 9,700 and 14,000 voters.